TMI Blog2008 (1) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated December 17, 2004, by framing the following substantial questions of law. "1. Whether the jurisdiction of the Assessing Officer for assessment of undisclosed income in a block assessment under section 158BB of the Income-tax Act, 1961, is limited to the material found during the search or on the basis of information available the Assessing Officer could estimate the income to the best of his judgment de hors the material on record, appreciating the factual circumstances of the case? 2. Whether, in the facts and circumstances of the case, the learned Tribunal was justified in deleting the entire trading additions so also the addition of Rs. 5,50,559 on account of unexplained opening capital made by the Assessing Officer?" 3. Thereafter, the assessee filed cross-objections, exercising his right under section 260A(7) read with Order 41, rule 22 of the Civil Procedure Code, and this court, vide order dated July 7, 2005, admitted the cross-objections, by framing the following substantial question of law: "Whether the Income-tax Appellate Tribunal has misconstrued the provisions of section 158BE providing for limitation for completion of block assessment and has gros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned after the 30th day of June, 1995, but before the 1st day of January, 1997; (b) within two years from the end of the month in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January, 1997. (2) The period of limitation for completion of block assessment in the case of the other person referred to in section 158BD shall be- (a) one year from the end of the month in which the notice under this Chapter was served on such other person in respect of search initiated or books of account or other documents or any assets requisitioned after the 30th day of June, 1995, but before the 1st day of January, 1997; and (b) two years from the end of the month in which the notice under this Chapter was served on such other person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs the cases of the persons, other than the person, with respect to whom search was made, and undisclosed income of such other person is found. In the present case, it is not the case of the Revenue that any search was conducted against, or on the premises of the present assessee. Obviously, therefore, the provisions of sub-section (1) are not at all attracted. 10. So far sub-section (2) is concerned, it comprehends two eventualities : one being notice should have been served on such other person in respect of search initiated, and the other eventuality being that books of account or other documents or any assets should have been requisitioned. Obviously, this sub-section applies to cases referred to cases in section 158BD, and a look at section 158BD shows that it provides that where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A, then such books of account, etc., are to be handed over to the Assessing Officer having jurisdiction over such other person, and the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded, and so on. Obviously, there is a long distance between entertaining reason to believe, issuing authorization, and actual conducting of search. In that view of the matter, the words used in various clauses of section 158BE are significant. In the two clauses in sub-section (1), the words are "last of such authorization for search under section 132 or for requisition under section 132A". As against which the words used in sub-section (2) are "in respect of search initiated or books of account or other documents or any assets requisitioned". 13. Thus, actual conducting of search is not given any relevance in either of these two sub-sections. Since, in the present case, we are concerned with sub-section (2), we only have to find out as to when the search was initiated. Obviously, since the search warrant was issued admittedly on December 30, 1996, the initiation of search, could on no parameters be said to have not commenced, in any case, on this date. We make it clear that we are not examining in this case, the precise point as to when the search can be said to have initiated, since the facts in this case are clear that search warrant was issued on December 30, 1996, obvi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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